Earlier in the week I posted a book notice for J.D.G. Dunn' new book Oral Gospel Tradition
Now, I suspect by coincidence, Mark Goodacre has posted installment 66 of his excellent NT Podcast in which he talks about oral tradition and the telephone game. Mark explains how oral tradition may or may not have worked in relation to the gospel tradition.
If you are new to New Testament studies or a professor looking for resources, I highly recommend Mark's podcasts as a way to teach important concepts in a short, yet informative space of time. You can find all of his podcasts at NT Pod.